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I have an insurance policy for my car with Budget Insurance.

I have an insurance...

I have an insurance policy for my car with Budget Insurance. My vehicle is a 2004 Kia Picanto. I have comprehensive cover . My vehicle was in an accident recently when my husband was driving it. A lady bumped the side of the vehicle. Budget had my car assessed, the repairs would be R+-27000.00, they were not willing to pay these repairs , but wanted me to write off my car and would pay me out R19000.00. I then had my car assessed by another professional company who can repair it for R22000.00. Budget are now only willing to give me R8000.00 of which they will take off R5000 for the excess, so i will only get paid out R3000.00 As this is my only means of transport i will need to have my vehicle repaired. I cannot afford to buy another vehicle. I have spoken to Budget advising them of this, i have also twice requested a copy of the terms and conditions of this policy, they are not willing to give me a copy of these terms and conditions. I have also gone onto their web site to try to get these terms and conditions, but they are not available. The only thing they send is the statement which does not reflect terms and conditions. Without looking at these terms and conditions i am not aware of what my consumer rights are? The R3000 they are willing to give does not even equal what i have paid in since i joined Budget. Since joining Budget i have been a loyal customer and have never put in any claims. I have looked at the Kelly Blue Book for 2018 for the market value of my vehicle (which is between R35 - R40 000.) I mentioned this to budget but apparently they do not use the same values as other insurers. I realise that Budget cannot give me this amount, but how do i have my car repaired for R3000.00. What is my recourse and what are my rights? How do we sort this out in a fair manner? On their website Point 3 states, fair treatment of clients, i do not feel that i am being treated fairly, i feel that i have been cheated. Thank you in advance for your prompt response. Regards Charmaine

Lawyer's Assistant: Since estate law varies from place to place, can you tell me what state this is in?

This is in Cape Town, South Africa

Lawyer's Assistant: What steps have you taken so far?

I have contact the insurance, discussed the money, had my car moved to another workshop to have it assessed. Received the quote from them. In the mean time my car is being repaired as I need to get my car back asap.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Not at the moment. Thank you.

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Answered in 3 hours by:
4/9/2018
CaseLaw
CaseLaw, Attorney
Category: South Africa Law
Satisfied Customers: 1,706
Experience: BCom; LLB; Masters in Law
Verified

Hi there and thank you for your question,

I am a practicing attorney based in South Africa and I will try to assist you with your legal question but please feel free to ask as many follow up questions in order to clarify your initial question. If you have a new question, you must please open a new thread.

It sounds to me as if Budget have valued your car at R24k. That is why they were initially willing to pay you R19k after deducting the R5k excess.

It looks to me as if you have a dispute with Budget. If you can't resolve the dispute yourself - it appears that you can't - you are legally allowed to refer the dispute to the Ombudsman For Short Term Insurance who will look at your complaint, and make a ruling. Their website is here.

You will need to complete the complaint form (http://www.osti.co.za/steps-to-lodge-complaint.html) and submit that together with all of your correspondence, and a short summary of your complaint. Keep it short; straight forwards; and simple to understand.

One of your complaints should be that Budget is not willing to give you a copy of the T&Cs.

If you don't come right there, your only real option is to issue a summons - at a cost!

If my answer hasn't provided you with enough clarity regarding your initial question, please send me a REPLY with follow up questions so that I can continue to assist you in this same thread for as long as you need. Let me know if you need more advice - don't just rate my answer as "bad".

If my are HAPPY with my answer then please click one of the STAR ratings or the SMILEY FACES to rate my answer!

Good luck and best regards,

CaseLaw

CaseLaw
CaseLaw, Attorney
Category: South Africa Law
Satisfied Customers: 1,706
Experience: BCom; LLB; Masters in Law
Verified
CaseLaw and 87 other South Africa Law Specialists are ready to help you
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Customer reply replied 3 months ago
Thank you for the prompt reply. Originally market value was R24,000-00. Insurance offered me R19,000.00 only If I scrap my car. I cannot afford to do this, so I got a quote to repair it for R22,000-00. I had to borrow this money to start the repairs on my car. As I wouldnt scrap my car the insurance says they will now only give me R8,000.00 but they will take off R5,000.00 so I will only then be paid out R3,000-00. Is this allowed as R3,000.00 is even less than what I have paid in over the years plus I have never claimed from my insurance? I await your response. Thank you.
Customer reply replied 3 months ago
Can you please reply to my question above. Thank you.

Look, if the market value of the car was R24k, and they offered you R19k (obviously deducting the excess of R5k) then really what they are saying is that the scrap value of your car PLUS the cash value that they are willing to pay, equals R19k.

If you said that you're not willing to accept that offer, and you wanted straight cash, then they would have said "okay, we'll take the R24k and deduct the R5k excess, and also the scrap value, and then give her the remaining balance, which would then work out to R3k." Based on this, the scrap value of your car is R16k - which actually seems quite high.

The fact that the R3k is less than what you've paid over the years doesn't make any difference, neither does the fact that you've never claimed.

I would still refer this dispute (i.e. the calculation of the payment) to the Ombudsman For Short Term Insurance who will look at your complaint, and make a ruling.

It is a free service, so you can't really lose.

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